Texas based EB-5 visa regional center USA Now is under investigation by the FBI for suspicion of money laundering, wire fraud, the transportation of stolen property and operating as a scheme to defraud wealthy Mexican nationals of their investments. Search warrants indicate that the FBI has been investigating the EB-5 regional center for over a year and records show that funds invested by Mexican investors were transferred into bank accounts controlled by USA Now principals Bebe and Marco Ramirez to pay off personal debts, purchase luxury automobiles, other personal property and pay returns to investors from funds brought in by new investors.
The following information was taken from documents that were seized by the FBI and sworn testimony of Special Agent Benjamin LaBuz whose office conducted an extensive forensic audit and investigation into the movement of funds from the EB-5 immigrant investors to the Ramirez's various personal and business accounts. Prior to joining the FBI, Special Agent LaBuz spent six years in the Office of Inspector General Criminal Investigation Division Department of Veterans Affairs.
Investor 1: Where did his EB-5 investment end up?
According to the affidavit of one investor from Mexico’s Nuevo Leon state, he told FBI investigators that he gave USA Now $500,000 which bank records indicate was soon transferred by the Regional Center operator Bebe Ramirez into the account of another company which she ran, Now Co. Loan Services. Later that same day, she wrote a check for $6,500 as a down payment on a Mercedes Benz 550. This vehicle, along with a Dodge Ram 3500 also allegedly purchased with investor funds, was seized by Federal Agents.
Investor 2: Where did their EB-5 capital investment funds end up?
Investor 2 is a resident of Queretaro, Mexico who invested in the EB--5 program.
On or about April 1, 2011, Investor 2 wire transferred $500,000 to the USA Now Regional Center "Escrow Account" (INB Account 4613511) located in McAllen, Texas. The wire originated at Banco Nacional de Mexico, located in Mexico. The wire transfer credit resulted in an account balance of $500,045 in the USA Now Regional Center LLC "Escrow Account" (INB Account 4613511). On or about April 4,2011, a $500,000 check paid to the order of "Bayou Grill" cleared the USA Now Regional Center "Escrow Account" (INB Account 4613511).
The check was signed by B. RAMIREZ. The check was credited to the Bayou Grill LLC account (INB Account 4612914). The $500,000 account credit resulted in a $500,021.09 account balance in the Bayou Grill LLC account(INB Account 4612914). The $500,000 account debit from the USA Now Regional Center "Escrow Account" (INB Account 4613511) resulted in a balance of $45.
On or about April 4, 2011, a $485,000 check paid to the order of "Now Co. Loan Services" cleared the Bayou Grill account (INB Account 4612914). The check was signed by B. RAMIREZ. The check was credited to the Now Co. Loan Services account (INB Account 4613554). The $485,000 account credit resulted in a $502,294.27 account balance in the Now Co. Loan Services account (INB Account 4613554). The $485,000 account debit from the Bayou Grill account (INB Account 4612914) resulted in a balance of $14,880.94.
On or about April 4, 2011, a $485,000 cashier's check paid to the order of "Law Office of Millin Ortiz" cleared the Now Co. Loan Services account (INB Account 4613554). A counter debit slip was signed by B. RAMIREZ that resulted in the cashier's check. The following table summarizes the aforementioned transactions and other transactions that posted on the same day.
Investor 3: Where did their EB-5 capital investment funds end up?
Investor 3 is a resident of Nuevo Leon, Mexico and an investor in the EB-5 program.
Investor 3 was interviewed by Special Agents on January 22, 2013 regarding his/her investment with USA Now. Investor 3 stated that s/he did not know where his/her money was located, but believed that it was invested in a restaurant chain.
On or about June 24, 2011, a $500,000 account transfer debit from investor 3 was credited to the USA Now Regional Center "Escrow Account"(INB Account 4613511) located in McAl|en, Texas. The wire originated at Banco Nacional del Norte, located in Mexico. The $500,000 credit resulted in a $500,005 account balance in the USA Now Regional Center "Escrow Account"(INB Account 4613511).
On or about June 24, 2011, a $433,305 check paid to the order of Investor 1 and signed by B. RAMIREZ cleared the USA Now Regional Center "Escrow Account" (INB Account 4613511). The memo line portion of the check, located in the lower left corner, read Return." The $433,305 account debit resulted in a $66,700 account balance in the USA Now Regional Center "Escrow Account" (INB Account 4613511). Your Affiant is aware that Investor 1 is a previous EB-5 investor who wanted his/her money back.
Investor 3 Ponzi Scheme
On January 8, 2013, an employee listed as Chief of Investor Relations for USA Now e-mailed Investor 3. The e-mail included an attachment that detailed Investor 3's interest earned. The statement listed Investor 3's annual rate (preferred return) as The statement further detailed that from June 24, 2011 through January 8, 2013, Investor 3 earned $21,438.36 interest on his/her $500,000 investment. Investor 3 provided this e-mail to your Affiant.
Your Affiant, having reviewed bank records, knows that Investor 3 transferred $500,000 for his/her EB-5 investment on June 24, 2011. Your Affiant knows that $433,305 of Investor 3's investment funds were used to repay Investor 1 on or about June 27, 2011. Your Affiant knows that an additional $9,595 was used to repay Investor 1 on or about July 21, 2011.
Your Affiant knows that because $442,900 of Investor 3's investment fund was used to repay Investor 1 that Investor 3 could not have legitimately earned $21,438.36 interest on his/her investment.
Your Affiant believes that M. RAMIREZ and B. RAMIREZ are operating a Ponzi scheme in an attempt to conceal the true location of Investor 3's funds.
Investor 4: Where did their EB-5 capital investment funds end up?
Investor 4 is a resident of Tamaulipas, Mexico and an investor in the EB-5 program.
On April 19, 2011, Investor 4 completed a DDA -- Debit Transaction Form at INB located in McA|len, Texas. The Debit Transaction Form authorized the transfer of $110,000 from Investor 4's account to be credited to the USA Now Regional Center "Escrow Account" (INB Account 4613511). The $110,000 credit resulted in a $110,040 account balance in the USA Now Regional Center LLC "Escrow Account" (INB Account 4613511).
On April 19, 2011, a $110,000 check paid to the order of and signed by B. RAMIREZ cleared the USA Now Regional Center "Escrow Account" (INB Account 4613511). The memo line portion of the check, located in the lower left corner, read "architect fees." The check was credited to the RGV Innovative Business Solutions account (INB Account 4612515). The balance of the RGV Innovative account (INB Account 4612515) after the account credit was $110,097.01. The balance of the USA Now Regional Center "Escrow Account" (INB Account 4613511) after the account debit was $40.
On April 19, 2011, a $55,000 check paid to the order of "Marco Ramirez" and signed by B. RAMIREZ cleared the RGV Innovative Business Solutions account (INB Account 4612515). The memo line of the check, located in the lower left corner, read "Development Fees." The check was endorsed by M. RAMIREZ and B. RAMIREZ and was credited to Bebe Ann Ramirez' Personal Checking account (INB Account 4144724.) The balance of Bebe Ann Ramirez' Personal Checking account (INB Account 4144724) after the account credit was 63,694.53. The balance of the RGV Innovative Business Solutions account (INB Account 4612515) after the account debit was $55,097.01.
On April 19, 2011, a $54,000 check paid to the order of "Mercedes Benz" and signed by B. RAMIREZ cleared Bebe Ann Ramirez' Personal Checking account (INB Account 4144724.)
On or about May 20, 2013, Investor 4 received a document detailing the accounting of his/her investment fund. This document detailed Investor 4's interest earned. The statement listed Investor 4's annual rate (preferred return) as The statement further detailed that Investor 4 earned $23,309 interest for 441 earning days on a $500,000 investment.
The document included a history of interest disbursements, one of which was for $14,268.79 on April 2, 2013. Investor 4 provided this e-mail to your Affiant.
Your Affiant, having reviewed bank records, knows that Investor 4 transferred $110,000 for his/her EB-5 investment on April 19, 2011. Your Affiant is further aware that Investor 4 made four additional deposits resulting in a total EB-5 investment of $500,000. Your Affiant knows that $54,000 of Investor 4's investment fund wasused to purchase a Mercedes Benz and an additional $55,000 of Investor 4's investment fund was used to pay Page Southerland Page, an architectural, engineering and consulting firm, for an investment project not approved by Investor 4.
Your Affiant knows that because $99,000 of Investor 4's investment fund was used to pay Mercedes Benz and Page Southerland Page that Investor 4 could not have legitimately earned $14,268.79 of interest on his/her $500,000 investment. Investor 4 provided your Affiant with a copy of a check from Now Co. Loan Services to Investor 4. The check was for $14,268.79, which Investor 4 said was for interest earned on his/her $500,000 EB-5 investment.
Your Affiant believes that M. RAMIREZ and B. RAMIREZ are operating a Ponzi scheme in an attempt to conceal the true location of Investor 4's funds. Statement of Probable Cause to Believe Reguested Records are located at 3700 N. 10"' StreetLSuite 210, McAlIen, Texas 78501.
Your Affiant is aware that on March 22, 2011, USA Now Regional Center received a letter from DHS-USCIS informing USA New Regional Center of its designation as a Regional Center within the Immigrant Investor Pilot Program. That letter stated, in part, "Therefore, in order for USCIS to determine whether your Regional Center is in compliance with the above regulation, and in order to continue to operate as a USCIS approved and designated Regional Center, your administration, oversight, and management of your Regional Center shall be such as to monitor all investment activities under the sponsorship of your Regional Center and to maintain records, data and information in order to provide the information required on the Form l--924A supplement."
Your Affiant has personally conducted surveillance at 3700 N. 10"' Street, Suite 210, McAllen, Texas 78501 and seen numerous USA Now employees, and vehicles known to belong to employees of USA Now parked in the parking lot adjacent to USA Now as recently as July 17, 2013.
Investor 5: Funds used to purchase a Dodge 3500 Truck
Investor 5 is a United States citizen and an attorney in McAllen, Texas.
On or about June 28, 2011, Investor 5 wrote a $470,000 check paid to the order of "Now Co Loan Services". The check was deposited into the Now Co. Loan Services account (INB Account 4613554), which had an opening balance of negative $196.20. The $470,000 account credit resulted in a $469,803.80 account balance in the Now Co. Loan Services account (INB Account 4613554).
On July 1, 2011, $50,000 was wire transferred from the Now Co. Loan Services account (INB Account 4613554) to U.S. Bank located in Boise, Idaho. The beneficiary of the check was David Smith Motors, 7 McKinley Avenue, Kellogg, Idaho 83837.
Your Affiant is aware that B. RAMIREZ had -$196.20 available in the Now Co. Loan Services account (INB Account 4613554) prior to the deposit of Investor 5's $470,000 investment. Your affiant is further aware that the $50,000 wire transfer to Dave Smith Motors represented the use of a portion of Investor 5's $470,000 investment.
Your Affiant interviewed Investor 5 who stated that M. RAMIREZ offered to help Investor 5 purchase real estate that Investor 5 previously lost because the property was foreclosed on by a bank. M. RAMIREZ told Investor 5 that M. RAMIREZ would use EB--5 investor money to help Investor 5 purchase the foreclosed property back from the bank.
Investor 5 told your Affiant that s/he wrote M. RAMIREZ a $470,000 check that M. RAMIREZ was to use to purchase back the real estate that Investor 5 lost due to foreclosure. Investor #5 has been partially repaid.
Your Affiant reviewed Texas vehicle registration records and identified a 2011 Dodge 3500 truck, Vehicle Identification Number 3D73Y3HL7BG509366, that is owned by M. RAMIREZ. The previous owner was David Smith Motors, located in Kellogg, Idaho.
Your Affiant contacted David Smith Motors and spoke with Skip Robinett, manager at David Smith Motors. Robinett confirmed that the aforementioned vehicle David Smith Motors sold was physically located at David Smith Motors in Kellogg, Idaho at the time of sale.
Your Affiant believes that probable cause exists that M. RAMIREZ violated Title 18 U.S.C. 1343 and 1956, when M. RAMIREZ, having devised a scheme to defraud Investor 5, transmitted or caused to be transmitted in interstate commerce a $50,000 wire transfer for the purchase of a 2011 Dodge Ram 3500 located in Kellogg, Idaho with funds originating from McAIlen, Texas that were intended to be an investment for Investor 5.
In 2011, Ramirez was featured in a Foxnews.com article entitled "Wealthy Mexicans Are Increasingly Investing in the U.S. to Escape Cartel Violence": Marco Ramirez, director of USA Now, a Texas regional center that markets itself exclusively to Central and South Americans and operates in the Texas counties of Webb, Zapata, Starr, Hidalgo, Willacy, Kenedy and Cameron, says
our organization has raised $90 million from 160 Mexican investors since June 2010 and we expect to have 280 commitments by year end
No criminal charges have been filed against Bebe or Marco Ramirez, or any of their employees, five of which were named in the search warrants granted to the FBI. The EB-5 Center's attorney, Tony Canales told the AP that
the FBI does not understand the business. We think the government is wrong and can explain it.
According to the The McAllen Monitor, Marco Ramirez has told the paper that USA Now remains open.
"Our license is in place, we are active and doing great"
